Originally Posted by photobksolution
I'm setting up my new small business (sole prop.) and my bank suggested that I open 2 bank accounts. One is for revenue and one is for operating expenses. She said that this would make it easier. I'm trying to figure out why 2 accounts is easier than one.
I have been in business since 1975 and have never had more than one business checking account at a time.
If you are able to obtain FEE FREE account with a second bank it may not be such a bad idea just in case your main bank has problems. I have considered doing just that.
Operating expenses and revenue should be tracked using accounting software such as QuickBooks where you would input data regarding all of your expense accounts and sources of revenue. A checking account is only a part of the whole.